After the Big Push? Fiscal and Institutional Implications of Large Aid Increases

Todd Moss () and Arvind Subramanian

No 71, Working Papers from Center for Global Development

Abstract: There are indications that overseas development assistance budgets will continue to increase in coming years, spurred in part by growing calls for a ‘Big Push’ in aid to the poorest countries. In this paper, we estimate the effect of six proposals on aid intensity ratios for 52 low-income countries. We find that, in the average scenario, at least 35 of these countries would see aid inflows equivalent to more than half of total public expenditure and 17 would cross the 75 percent threshold. We also consider possible negative influences of such increases on the incentives for institutional development, on the accountability of state institutions to their own populations, and on long-term sustainability.

Keywords: overseas development assistance; big push (search for similar items in EconPapers)
JEL-codes: O1 F35 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-dev, nep-pbe and nep-sea
Date: 2005-10
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Persistent link: http://EconPapers.repec.org/RePEc:cgd:wpaper:71

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